Form F declaration enquiry must be limited to truth and genuineness; rejection without proper verification is unsustainable.

Under Section 6A(2) of the Central Sales Tax Act, the assessing authority's enquiry on a Form F declaration is confined to verifying whether the particulars are true, correct and reliable. It may call for material to test genuineness, but it must conduct a proper enquiry and record a definite finding on that basis. If the declaration is rejected without such enquiry and only on other material, the assessment is vitiated. Applying that approach, the court found the rejection of the Form F declaration unsustainable and remanded the matter for fresh enquiry and a speaking order on merits.

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Issues: Whether the assessing authority, while dealing with a Form F declaration under the Central Sales Tax Act, 1956, was required to confine itself to an enquiry into the truth and correctness of the declaration before treating the movement of goods as an inter-State sale.

Analysis: The enquiry under Section 6A(2) of the Central Sales Tax Act, 1956 is limited to verifying whether the particulars furnished in Form F are true, correct and reliable. The assessing authority may call for relevant material to test the genuineness of the declaration, but it must make an enquiry and record a definite finding on that basis. Where no such enquiry is conducted and the declaration is rejected merely on the basis of other material, the assessment is vitiated. In the present case, the impugned order proceeded without the requisite enquiry into the Form F declaration and therefore failed to adopt the correct legal approach.

Conclusion: The issue is decided in favour of the assessee. The rejection of the Form F declaration was unsustainable, and the matter was remanded for fresh enquiry and a speaking order on merits.

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